National Bank of Oman Q4 net profit drops 38%

National Bank of Oman reported a 38 per cent drop in fourth-quarter net profit yesterday, falling short of analysts' expectations as loan activity and deposits slowed.

Oman's third-largest lender by market value had net profit of OR6.54 million (Dh62.4m/$16.99m) compared with OR10.6m in the year-ago period, according to Reuters calculations based on previous financial statements. The results were below forecasts for Q4net profit of OR7.81m, according to a Reuters survey.

Banks across the Gulf were forced to take extra provisions against bad loans in 2009 as fallout from the global financial crisis combined with some large debt restructurings in the region.

In June, the Omani bank said it had nearly $17m in exposure to two Bahrain-based units linked to a pair of Saudi groups.

The lender's full-year net profit fell 42.5 per cent to OR26.11m from OR45.38min 2008, according to a filing on the Muscat stock exchange.

The bank saw a six-per cent drop in customers' deposits and a 2.5 per cent decline in loans for the full year.

Results at two smaller Omani banks earlier this month pointed to more encouraging signs for the domestic banking sector.

Bank Dhofar said Q4 net profit rose more than four-fold.

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